Tata Consultancy Services Limited · NSE:TCS
Tata Consultancy Services — Q2 FY2015 Earnings Presentation
27 slides from Tata Consultancy Services's earnings presentation, Oct 16, 2014
Slide 1: TCS Financial Results Quarter II FY 2014-15
TCS Financial Results Quarter II FY 2014 - 15 October 16, 2014 Copyright © 2014 Tata Consultancy Services Limited 1
Slide 2: Disclaimer
Disclaimer Certain statements in this release concerning our future prospects are forward-looking statements. Forward-looking statements by their nature involve a number of risks and uncertainties that could cause actual results to differ materially from market expectations. These risks and uncertai
Slide 3: Q2 FY15 Performance Highlights
Q2 FY15 Performance Highlights Revenue: - INR Revenue of `238,165 Mn, growth of 7.7% QoQ and 13.5% YoY - USD Revenue of $3,929 Mn, growth of 6.4% QoQ and 17.7% YoY - Volume growth : 6.1%, CC Rev growth : 7.4% and organic CC Rev growth : 4.6% Profit: - Operating Income at ` 63,942 Mn, Operating M
Slide 4: Financial Performance
Financial Performance Click to edit Master title style 4
Slide 5: Growth Summary (INR)
Growth Summary (INR) Revenue Y-0-Y Growth Q-0-Q Growth 238,165 212,940 215,511 221,110 34.3% 31.2% 209,772 32.5% ` Million 22.9% 13.5% 16.6% 1.5% 1.2% 2.6% 7.7% Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Q2 FY15 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Q2 FY15 Operating Income Y-o-Y Growth Q-o-Q Growth 63,295 63,347 62
Slide 6: Growth Summary (USD)
Growth Summary (USD) Revenue Y-o-Y Growth Q-o-Q Growth 3,929 3,694 17.7% 3,438 3,503 17.0% 16.6% 16.7% 3,337 15.2% $ Million 5.5% 6.4% 5.4% 3.0% 1.9% Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Q2 FY15 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Q2 FY15 Y-o-Y Growth Q-o-Q Growth Operating Income 31.9% 1,023 1,055 1,007 1,0
Slide 7: Operational Performance
Operational Performance 7
Slide 8: Growth by Market
Growth by Market 1.9% 10.1% 51.0% North America 6.5% Latin America 11.5% UK Continental Europe India Asia Pacific 17.1% MEA 1.9% Q-o-Q Y-o-Y Geography (%) Q2 FY14 Q1 FY15 Q2 FY15 Growth Growth Americas North America 53.2 52.2 51.0 5.3 8.7 Latin America 2.3 2.2 1.9 -4.8 -2.7 Europe UK 17.3 17.7 17.1
Slide 9: Growth by Domain
Growth by Domain BFSI 2.7% 4.6% 4.3% 3.5% Telecom 6.3% Retail & Distribution 40.4% 5.7% Manufacturing Hi-Tech Life Sciences & Healthcare 10.1% Travel & Hospitality Energy & Utilities Media & Entertainment 13.5% 8.9% Others Q-o-Q Y-o-Y IP Revenue (%) Q2 FY14 Q1 FY15 Q2 FY15 Growth Growth BFSI 43.1 41
Slide 10: Growth by Service Line
Growth by Service Line 11.6% Application Development & Maint. 2.3% 40.5% 3.2% Enterprise Solutions Assurance Services 13.8% Engineering & Industrial Services Infrastructure Services 4.6% Global Consulting Asset Leveraged Solutions 8.4% 15.6% Business Process Services Q-o-Q Y-o-Y SP Revenue (%) Q2 FY
Slide 11: Client Parameters
Client Parameters Clients Contribution * Q2 FY14 Q1 FY15 Q2 FY15 US$ 1m+ Clients 687 724 743 US$ 5m+ Clients 318 359 367 US$ 10m+ Clients 224 244 247 US$ 20m+ Clients 125 144 153 US$ 50m+ Clients 53 58 62 US$ 100m+ Clients 22 24 24 *Last Twelve Months' services revenues 11
Slide 12: Operational Parameters
Operational Parameters Revenue % Q2 FY14 Q1 FY15 Q2 FY15 Delivery Location Local Delivery 46.5 47.1 48.9 Remote Delivery 53.5 52.9 51.1 Global DC 5.4 5.7 5.4 India DC 48.1 47.2 45.7 Contract Type Time & Material 48.5 47.5 48.7 Fixed Price & Time 51.5 52.5 51.3 12
Slide 13: Key Wins
Key Wins Chosen as a strategic partner by a leading North American diversified process manufacturing major for providing Application Management & Support services. Chosen as the Technology Partner by a leading European Global Communications Software and Services Company and has been awarded the
Slide 14: Human Resources
Click to Resources Human edit Master title style 14
Slide 15: Total Employee Base
Total Employee Base Total Employees : 313,757 313,757 305,431 300,464 290,713 285,250 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 15
Slide 16: Q2 Consolidated - Gross Additions 20,350 & Net Additions 8,326
Q2 Consolidated - Gross Additions 20,350 & Net Additions 8,326 Gross Additions: • 7,583 Trainees & 8,924 Laterals in India • 3,843 employees overseas Attrition*: 20,350 • 12.8% (LTM), including BPS 18,564 17,362 15,817 Utilization Rate*: 14,663 • 86.2% (excluding Trainees) • 81.3% (including Trainee
Slide 17: Annexure
Click to edit Master title style Annexure 17
Slide 18: IFRS Income Statement
IFRS Income Statement ` Million % of Revenue Consolidated IFRS Q2 FY14 Q1 FY15 Q2 FY15 Q2 FY14 Q1 FY15 Q2 FY15 Revenue 209,772 221,110 238,165 100.00 100.00 100.00 Cost of revenue 109,048 122,432 132,405 51.98 55.37 55.59 Gross margin 100,724 98,678 105,760 48.02 44.63 44.41 SG & A expenses 37,429 4
Slide 19: COR – SG&A Details
COR – SG&A Details ` Million % of Revenue COR Q2 FY14 Q1 FY15 Q2 FY15 Q2 FY14 Q1 FY15 Q2 FY15 Employee cost 77,119 86,468 91,549 36.76 39.11 38.44 Fees to external consultants 13,141 13,244 16,113 6.26 5.99 6.77 Equipment & software 3,891 3,264 3,794 1.86 1.48 1.59 Depreciation 2,038 3,608 2,876 0.9
Slide 20: IFRS Balance Sheet
IFRS Balance Sheet 31-Mar-14 30-Sep-14 Consolidated IFRS ` Million % ` Million % Assets Property and equipment 103,644 15.04 111,593 16.87 Intangible assets and Goodwill 41,568 6.03 40,570 6.13 Accounts Receivable 182,304 26.46 199,084 30.09 Unbilled Revenues 40,056 5.81 45,499 6.88 Investments 34,6
Slide 21: IFRS Income Statement – In USD
IFRS Income Statement – In USD $ Million % of Revenue Consolidated IFRS Q2 FY14 Q1 FY15 Q2 FY15 Q2 FY14 Q1 FY15 Q2 FY15 Revenue 3,337 3,694 3,929 100.00 100.00 100.00 Cost of revenue 1,735 2,045 2,184 51.98 55.37 55.59 Gross margin 1,602 1,649 1,745 48.02 44.63 44.41 SG & A expenses 595 677 690 17.8
Slide 22: COR – SG&A Details – In USD
COR – SG&A Details – In USD $ Million % of Revenue COR Q2 FY14 Q1 FY15 Q2 FY15 Q2 FY14 Q1 FY15 Q2 FY15 Employee cost 1,227 1,445 1,510 36.76 39.11 38.44 Fees to external consultants 209 221 266 6.26 5.99 6.77 Equipment & software 62 55 63 1.86 1.48 1.59 Depreciation 33 60 47 0.97 1.63 1.21 Travel 41
Slide 23: IFRS Balance Sheet in USD
IFRS Balance Sheet in USD 31-Mar-14 30-Sep-14 Consolidated IFRS $ Million % $ Million % Assets Property and equipment 1,726 15.04 1,808 16.87 Intangible assets and Goodwill 692 6.03 658 6.13 Accounts Receivable 3,035 26.46 3,226 30.09 Unbilled Revenues 667 5.81 737 6.88 Investments 576 5.02 111 1.03
Slide 24: Indian GAAP Income Statement - Consolidated
Indian GAAP Income Statement - Consolidated ` Crore % of Revenue Consolidated Indian GAAP Q2 FY14 Q1 FY15 Q2 FY15 Q2 FY14 Q1 FY15 Q2 FY15 INCOME a) IT & Consultancy Services 20,533 21,793 23,359 97.88 98.56 98.08 b) Manufacturing, Sale of equipment and Licences 444 318 457 2.12 1.44 1.92 Total Incom
Slide 25: Indian GAAP Balance Sheet - Consolidated
Indian GAAP Balance Sheet - Consolidated ` Crore % Consolidated Indian GAAP 31-Mar-14 30-Sep-14 31-Mar-14 30-Sep-14 EQUITY AND LIABILITIES Shareholders' Funds 49,195 48,462 73.27 74.57 Minority Interest 708 1,079 1.06 1.66 Short term and long term borrowings 254 198 0.38 0.31 Deferred tax liabilitie
Slide 26: Currency mix and average realized rates in INR
Currency mix and average realized rates in INR Average rates % of Revenue Currency Q1 FY15 Q2 FY15 Q1 FY15 Q2 FY15 USD 59.85 60.62 55.83% 54.33% GBP 100.80 100.64 15.85% 15.29% EUR 81.92 79.49 9.14% 8.51% Others 19.18% 21.87% Total 100.00% 100.00% 26
Slide 27: Thank You
Thank You IT Services Business Solutions Consulting
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